SSRG International Journal of Economics andManagement Studies ( SSRG – IJEMS ) – Volume 4 Issue 3 March 2017
A Study on Customers Awareness on Green
Banking Initiatives in Selected Private Sector
Banks with Reference to Kunnamkulam
Municipality
Satheesh Kumar. C
M.COM, NET, Research scholar, Khadirmohideen college, Adirampattinam, India
Abstract
Education is the strongest weapon to reach a
socially and environmentally beneficial system of the
society. Education always satisfies the sustainable
development which cannot be achieved without
industrial development. The increasing problems of
climate changes and global warming along with
environmental impact of companies have made more
environmental sensitive. So there arises a need to
reduce the collective carbon footprint. Green banking is
a very general term which covers a multitude of area
from a bank being environmentally friendly to how their
money is invested. The world has been much focus on
economic progress and mankind has made giant steps
in its journey through time. The adverse effects of
development process have however; also adversely
affect thebiodiversity, climate change, environmental
damage etc. Banking industry is also not an exception
for this. Banking industries tries to find out the ways to
go green through green banking this study attempt to
check the awareness level of green banking among the
general public and consumers. This study also checks
theawareness about green bank employees. Chi-square
test is also used to test the association between
banker’s motivation and its effectiveness.
Key words: Green banking, Awareness and
Environmental Protection
I. INTRODUCTION
Sustainability is always based on environment.
Environment protection is one of the obligations of
every citizens, business firms, etc.Environmentelism is
a key philosophy regarding concerns for environmental
conservation and improvement of the state of the
environment.An enterprise that has minimal negative
impact on the global or local environment, community,
society, or economy is called a sustainable business or
green business. Environmental protection is one of the
important duties of any business organization. As a
responsible financial organization of our country banks
plays an important role in addressing the environmental
issues both in terms of obligation and opportunities by
ISSN: 2393 - 9125 www.internationaljournalssrg.org
virtue as a responsible corporate citizen and a
financier.Greenbanking is like a normal banking system
which consider all the social and environmental factors
so it is also called ethical banks. These banks are started
with the aim of protecting the environment. Green
banking system always tries to change the client’s usual
banking habit.
Objectives
1. To know about the green banking products.
2. To check the awareness of green banking
among the general public and consumers.
3.
Hypothesis
H0: Bankers motivation and its effectiveness are
independent.
II. REVIEW OF LITERATURE
According to Amitabh Mishra, B R kumar and
DharamBirsingh, 2013, on his study A study of Gaps in
Service Quality at a leading private sector commercial
bank in greater Noida,account holders are more
dissatisfied with the service quality dimension.This
study helps to know the weak area of a banks service
where immediate steps are necessary.
The Role of Green Banking in sustainable Growth,
2012, this study explained that the survival of the
banking industry is inversely proportional to the level
of global warming.
According to Vinay Kumar Nagu 2012 it is evident
that primary benefits of E- CRM in the banking sector
is the reduced cost of operation, locks in target prices,
and increases in customer loyalty.
III. RESEARCH METHODOLOGY
 Research design:
Descriptive research design is used for the study.
 Sources of Data:
Primary and secondary data were used for this purpose.
Primary data were collected from hundred customers
through telephone interaction and personal interview.
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 SSRG International Journal of Economics andManagement Studies ( SSRG – IJEMS ) – Volume 4 Issue 3 March 2017
Data were collected from the general customers of
bank.
 Sample Size:
Samples of hundred respondents were selected for this
study. Respondents having sound educational back
ground with some knowledge about green banking
products are deliberately targeted and approached for
the study.
 Data collection tool:
A structured questionnaire was used for data collection.
IV. GREEN BANKING PRODUCTS AND
SERVICES
 Retail banking
 Corporate investment banking
 Asset management
 Insurance
A. Retail Banking
1) Green Mortgages
This facility helps the individual customer to
get a lower interest rate green loan than market rate,
who is ready to purchase new energy efficient homes.
This facility also allows them to invest in energy
efficient appliances.
2) Green Home Equity Loans
Reduced rate home equity loans sometimes
referred to a second mortgages can help motivate
households to install residential renewable energy
(Power or thermal), technologies.
3) Green Commercial Building Loans
From the above study we conclude that, green
banking initiatives like solar ATM, banking
environment policy, green loans, are not familiar
among the customers. Environment protection is the
duty of every citizen, including Attractive loans designs
and arrangements have started to emerge for green
commercial building characterized by lower energy
consumption reduced waste and less pollution than
traditional building.
4) Green Car Loans
With below market interest rate many green
car loans encourage the purchase of cars that
demonstrate high fuel efficiency.
5) Green Cards
A broad family of green products includes
debit and credit cards linked to environmental activities.
This green cards offered by large credit card companies
offer to make nongovermenent organizations donations
equal to approximately One-half percent of every
purchase, balance transfer or cash advance made by the
card owner.
ISSN: 2393 - 9125 www.internationaljournalssrg.org
B. Corporate Investment banking
1) Green Project finance
A number of banks are now ready to accept
large scale renewable energy project. For this they have
to create service divisions also to help those companies
who under take large scale renewable energy system.
2) Green Securitization
A variety of environmental securitization
techniques have begun to emerge, including
forest bond, eco securitization pilot program and green
mortgage-backed securities.
3) Green Venture Capital and Private Equity
While issuing finance through capital market,
we can see that, high consideration paid to
environmental issues. In particular banks can play a
vital role in assisting with IPO for clean technology
providers, carbon credit developers, and other firms
marketing environmental product and services.
4) Green Index
Some banks have currently developed index
that fluctuate as future environmental opportunities and
challenges
C. Asset Management
1) Green Fiscal Fund
By purchasing shares in a green fund or
investing money in a green bank, citizens are exempted
from paying capital gain tax and receive a discount on
income tax.
2) Green Investment Fund
Sustainable investment funds have evolved
through three generations, where the complexity of
assessing investment eligibility rises at easy level.
3) Carbon Fund
Collaboration between multi lateral
development banks and private financial institutions has
led to the emergence of a variety of carbon funds to
help finance GHC emission reduction projects to curb
climate changes
D. Insurance
1) Green Insurance
This type of insurance typically encompasses
two product areas
 Insurance products with differentiate insurance
premium on the basis of environmentally related
characteristic
 Those specially tailored for clean technology and
emission reducing activities
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 SSRG International Journal of Economics andManagement Studies ( SSRG – IJEMS ) – Volume 4 Issue 3 March 2017

2) Carbon insurance
There are many risks inherent in emission C. Interpretation
reduction transaction, as well as low carbon project Calculated value of chi square is
assessment and development activities. In response 3.64117.Table value at 5% level of significance is
some financial institutions now offer insurance product 3.84.So null hypothesis is accepted.
to manage carbon credit price volatility.
D. Findings
V. DATA ANALYSIS AND INTERPRETATION 1. 70% of the respondents are Male and 30% are
females.
Table 1 : Green Banking Awareness Among Respondents 2. 42% of respondents are post graduates and
Green banking initiatives Aware Not rests are graduates.
aware 3. 82% of respondents are fully aware about
Online Bill payment 82 18 online bill payment.
Avoid paper work 78 22 4. . Most of the respondents are fully aware about
Online savings account 87 13 online savings account.
Cash deposit system 83 17 5. 86% of the respondents are fully aware about
Net banking 86 14 net banking.
E investment services 60 40 6. Most of the respondents have no idea about
Green home equity loan 17 83 solar ATM, and green car loan, bank policy
Bank environment policy 16 84 and green commercial building loan.
Green car loan 20 80 7. Majority of the respondents are fully aware
Green commercial building loan 16 84 about online savings account.
Solar ATM 21 79 8. Most of the respondents opined that, banker’s
motivation is not much effective.
A. Interpretation
From the above table it is clear evident that E. Suggestions
customers are showing a good degree of awareness 1. Bank should conduct various awareness
level regarding green banking initiatives like online program me to educate public.
payment, avoiding paper work, online saving account, 2. Tradefares and exhibitions should be
cash deposit system and net banking. But most of the organized by banks.
respondents opined that, they are least aware of these 3. Banks should arrange incentives for those
modern facilities like green home equity loan, bank customers who are keeping green policies.
environment policy, green carloan, green commercial 4. . Creating awareness through web sites, Road
building loan and solar ATM.According to them, the shows event meeting and media.
selected banks still not introduced these facilities. 5. Imparting education through
a) Internet e-learning program.
B. Testing of Hypothesis b) Interactive internet application.
motivated Not total c) Participation conference and meet.
motivated d) Publication of information material.
e) Annual environmental report
effective 6 5 11
Not
VI. CONCLUSION
effective 22 67 89
Sustainable development of Indian economy is
total 28 72 100 based on banks and financial institution. So
Indianbanks triesto perform efficiently than the foreign
O E (O-E)/2 banks for attaining green banking system. They should
take necessary action to educate the general public for
6 3.08 1.421067
initiating green banking system.
22 24.92 0.387564
REFERENCE
5 7.92 1.70528 [1] Dharwal m. Agarwal. (2013) Green banking on innovative for
sustainable development.
67 64.08 0.12726 [2] Ray vareen, ‘A green dream, 4p`s Business marketing, 21,
3.64117 Nov.to 4 Dec. 2008
[3] Leslie D.monte, It’s a times for green banking, Business
standard, May 21, 2010
[4] Canara bank annual report (2013- 2014)

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